Create a Correspondent Master Commitment

Use the Correspondent Masters tab to create master commitments and then:

Add delivery type and tolerance information for the master commitment.
Allocate correspondent trades to the master commitment.

Create a Correspondent Master Commitment:

When creating a master commitment, you must select a Third Party Originator (TPO) and then select a Commitment Type. Once you make your selections, the master commitment's Details tab is displayed.

Click the Trades tab, and then click the Correspondent Masters tab.
Click the New icon.
Select a TPO using the Find icon (magnifying glass).
- Click the Lookup icon.
- On the Third Party Originator Selector screen, select a TPO.
- Click Select.
- The TPO Info section is completed.
Select a Commitment Type.
- The Commitment Type options provided here (Mandatory and/or Best Efforts) are determined by the settings that were configured for the TPO who originated the loan by the administrator. The administrator uses the Commitments tab in the TPO’s Company Details window to manage these Commitment Type options.
  
  If both options are available, they can both be selected for the master commitment.
- In Encompass 17.4 and later, the following validations are performed to ensure the correct commitment types are enabled.

When Allow Best Efforts for Correspondent Trades on the Trade Management Setup settings AND Best Efforts on the Company Details Commitments tab are selected, the Best Efforts checkbox on the New Correspondent Master Commitment (NCMC) pop-up screen is enabled.
When Best Efforts is selected on the NCMC pop-up screen, the Best Efforts checkbox on the Master Commitment Details tab is selected.

When Allow Best Efforts for Correspondent Trades on the Trade Management Setup settings OR Best Efforts on the Company Details Commitments tab is not selected, the Best Efforts checkbox on the NCMC pop-up screen is disabled.
When Mandatory on the Company Details Commitments tab is selected, the Mandatory checkbox on the NCMC pop-up screen is enabled.
When Mandatory is selected on the NCMC pop-up screen, the Mandatory checkbox on the Master Commitment Details tab is selected.
When Mandatory on the Company Details Commitments tab is not selected, the Mandatory checkbox on the NCMC pop-up screen is disabled.

Click OK.
Complete the Master Commitment Info, Delivery Type View, and Correspondent Trades sections.

Master Commitment Info

Type a unique Master Commitment #.
- If the Auto Loan Numbering option is enabled in Encompass Settings, Encompass automatically numbers the master commitment and this field is read-only.
Enter a Master Effective Date & Time.
Enter a Master Expire Date & Time.
Complete the remaining fields as needed.
- The available Price Group options are based on the Price Group configured by the administrator for the TPO that originated the loan. The administrator configures the TPO’s Price Group in the Product and Pricing section of the Details tab in the Company Details window.
- The Master Commitment Amount cannot be greater than the Available Amount.
- If the Master Commitment Amount is greater than the Available Amount, an error message is displayed.
- The Available Amount cannot be less than zero.
- The Available Amount cannot be less than the Trade Amount.
- If the Available Amount is less than the Trade Amount, an error message is displayed.

Delivery Type View

In this section add at least one Delivery Type.

The available delivery types are based on the Company Details Commitments tab settings (under External Company Setup).
If both commitment types are selected (Mandatory and Best Efforts), at least one Mandatory delivery type and one Individual Best Efforts delivery type must be added.
The Delivery Days accepts numeric values up to 3 digits (no decimals).
The Tolerance accepts numeric values out to 6 places including decimals (e.g., xx.xxxx% or xxxxxx%).
The Delivery Type Effective and Expire dates must fall within the time frame of the Master Effective and Expire dates.

Correspondent Trades

This section enables you to view all correspondent trades associated with the master commitment.

Use the fields to search for correspondent trades.
You can add or remove columns by right-clicking a column header, and then clicking Customize Columns.
To remove a column, clear the corresponding checkbox.
To add a column, select the corresponding checkbox.
You can change the column order by clicking and then dragging a column to the desired location.
Column customization is saved but the filters are cleared when the master commitment is saved or you exit the master commitment.

Click the Save icon (on the top right of the screen).

In Encompass 17.4 and later, if the Policy for Trades that exceed Max Commitment Authority on the Company Details Commitments tab is set to “Don’t allow Trade creation”:
If the Master Commitment Amount does not exceed the Mandatory Available Commitment Amount, the correspondent master commitment is saved.
If the Master Commitment Amount exceeds the Mandatory Available Commitment Amount, a message is displayed and the correspondent master commitment is not saved.

Create a Correspondent Master Commitment

Create a Correspondent Master Commitment:

See Also